US FBA Nexus and Amazon Sales Tax Collections
Am I right in believing that if amazon is collection the sellers sales tax and paying it for them, then that seller does not need nexus or a sales tax collection permit in the states that Amazon does this if they are a UK seller and using Amazon FBA only to sell in the US as all sales tax responsibilities has been moved from the seller onto Amazon instead?
6 replies
Seller_esvgLzKXw2YAl
Not 100% sure of the states, but the rules changed, to ensure that online marketplaces collected the tax. They did not however, change in that to store your stock, in the other country, still means that you need to register for VAT. So I very much doubt, that if you store your stock there, it will exclude you from sales tax etc.
I’d suggest, that you ask an accountant about it.
Seller_CVHqAm1a6eJM2
We sell in the states via FBA and have done for a few years now. Amazon have collected all sales tax for us and submitted it - we’ve had to do nothing.
However, because we are incorporating in the US as a new entity and opening a website, now we are in a world of pain with sales tax liabilities and having to register with different states. Every FBA warehouse is a potential nexus, so the initial outlay can be quite substantial. I think if you are FBA only you should be okay, but it’s always best to speak with a CPA.
Seller_esvgLzKXw2YAl
You might want to take a read of the below. Not sure how in date it is, but it gives the basics.
@ScottFF I did notice the below, but I presume you have an accountant sorting it all out for you.
- Inventory – If you store goods for sale in a state, sales tax nexus is usually created. If you’re a seller who makes use of third-party fulfillment services like Amazon FBA you’ll generally have sales tax nexus in states where your products are stored for sale
Seller_4K2qdiWADHllq
After searching for hours, the best information I found was here: https://www.avalara.com/us/en/learn/guides/state-by-state-registration-requirements-for-marketplace-sellers.html
So no longer need any help with this as that info is what I was looking for.
